GlobalFoundries Finalizes Agreement and Secures French State Aid for New Semiconductor Manufacturing Facility JV With STMicroelectronics
June 5, 2023
Cleary Gottlieb represented GlobalFoundries in the finalization of an agreement and securing of a €2.9 billion State aid to support the establishment of a new semiconductor manufacturing facility in France to be jointly operated with STMicroelectronics.
On July 11, 2022, GlobalFoundries and STMicroelectronics announced the signing of a memorandum of understanding for the establishment near Grenoble (France) of a new 300 mm semiconductor manufacturing facility, adjacent to ST’s existing 300 mm facility in Crolles (France) with significant financial support from the French State. The French State will provide €2.9 billion in state aid. The agreement was finalized on June 5, 2023.
The aid measure, in line with the objectives set out in the European Chips Act and part of the “France 2030” plan, recently received approval from the European Commission. The program represents an overall projected cost of €7.5 billion. The French State aid will be administered by Bpifrance.
GlobalFoundries is one of the world’s leading semiconductor manufacturers with a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe, and Asia. GlobalFoundries is majority owned by Mubadala.
STMicroelectronics is an integrated device manufacturer serving customers to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world.